Shore Capital Partners said April 17 that its third institutional healthcare private equity fund closed on $293 million, while its debut food and beverage pool collected $148 million. Shore Capital Healthcare Partners Fund III surpassed its original $250 million target and will invest primarily in control buyouts, focusing on microcap healthcare businesses. Shore Capital Food & Beverage Partners Fund also surpassed its $125 million goal and will invest in food & beverage manufacturing, distribution, packaging, and related B2B service companies.
SHORE CAPITAL PARTNERS ANNOUNCES CLOSINGS OF THIRD HEALTHCARE FUND AND INAUGURAL FOOD AND BEVERAGE FUND WITH $293 MILLION AND $148 MILLION, RESPECTIVELY, IN COMMITMENTS
Combination of Funds Takes Leading Microcap Firm to Over $1 Billion in Committed Capital
CHICAGO – April 17, 2019 ‐ Shore Capital Partners (“Shore” or the “Firm”), a strategic private equity firm focused on the healthcare and food & beverage industries, today announced the first and only closings of its third institutional healthcare private equity fund, Shore Capital Healthcare Partners Fund III (“HC Fund III”), and its inaugural food & beverage fund, Shore Capital Food & Beverage Partners Fund I (“F&B Fund I”). HC Fund III raised $293 million, while F&B Fund I raised $148 million. With these respective closings, Shore now manages a total committed capital base of more than $1 billion.
HC Fund III surpassed its original target of $250 million and was substantially oversubscribed. HC Fund III will continue the successful investment strategy employed by the firm’s partners Justin Ishbia, Ryan Kelley, Michael Cooper, John Hennegan, Don Pierce and Chris Mioton. HC Fund III will invest primarily in control buyouts, focusing on microcap healthcare businesses with revenues between $5 million and $100 million.
F&B Fund I, Shore’s newly established vehicle led by Justin Ishbia and Richard Boos, surpassed its original target of $125 million and was substantially oversubscribed. F&B Fund I will aim to make control equity investments in food & beverage manufacturing, distribution, packaging, and related B2B service companies that have between $5 million and $100 million of revenue.
Commitments to both HC Fund III and F&B Fund I came from the firm’s existing investors, plus select new limited partners. Together, the funds attracted strong interest from many sophisticated institutions in North America, resulting in a diverse investor base comprised of leading university endowments, financial institutions, funds of funds and family offices. Additionally, the partners of Shore have committed to invest a substantial amount of capital alongside both funds.
“We are thrilled and humbled by the reception these funds have received from such a highly-respected group of investors,” said Justin Ishbia, Founder and Managing Partner of Shore Capital Partners. “Having the ability to expand our expertise and knowledge into the food and beverage space while simultaneously continuing our original healthcare-focused strategy is an attractive opportunity for our limited partners and firm as whole. As we strive to continue achieving a top-tier track record, we sincerely thank our limited partners who have instilled a significant amount of trust and confidence in our experienced and talented team of investment and operating professionals.”
“In addition to our third healthcare-focused fund, we are very pleased to have successfully closed our inaugural food and beverage fund and look forward to partnering with entrepreneurs and seasoned executives to drive impactful growth,” said Ishbia. “As has been the case for many years and various cycles, we are confident that the food and beverage industry will continue to present quality investment opportunities, particularly within a number of niche sectors. We are eager to begin deploying this capital to help companies reach their full potential.”
Kirkland & Ellis LLP served as legal advisor to Shore Capital Partners for the fundraising efforts. Shore did not use a placement agent.
About Shore Capital Partners
Shore Capital Partners is a Chicago-based private equity firm focused on microcap healthcare and food & beverage investments. Shore supports management partners with capital, business development expertise, and industry knowledge to accelerate growth, fund acquisitions, and generate value to shareholders. Shore targets investments in proven, successful private companies with superior management teams, stable cash flow, and significant growth potential, including organic and growth through industry consolidation. Shore has over $1 billion of equity capital under management through various investment vehicles. More information about Shore Capital Partners can be found at www.shorecp.com.